Networks: An Economic Perspective
Oxford Handbook of Social Network Analysis, R. Light and J. Moody (Eds.), Oxford, Oxford University Press, Forthcoming
40 Pages Posted: 29 Aug 2016
Date Written: August 21, 2016
We discuss social network analysis from the perspective of economics. We organize the presentation around the theme of externalities: the effects that one’s behavior has on others’ welfare. Externalities underlie the interdependencies that make networks interesting to social scientists. We discuss network formation, as well as interactions between peoples’ behaviors within a given network, and the implications in a variety of settings. Finally, we highlight some empirical challenges inherent in the statistical analysis of network-based data.
Keywords: Networks, Social Networks, Economic Networks, Network Games, Peer Effects, Game Theory, Network Formation, Externalities
JEL Classification: D85, L14, Z13, C72
Suggested Citation: Suggested Citation